Mill Lane Club, Inc. v. Commissioner
United States Tax Court
A social club lost a number of its members and the remaining members decided to sell the clubhouse, pay off existing debts, and distribute the assets. The club had been exempt from income taxes until the date of the sale. Held, the sale of the club property and the distribution of the pro rata share of assets among the members did not destroy the club's exemption from income taxes for the final year of its operation.
1Opinion of the Court
Mill Lane Club, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Mill Lane Club, Inc. v. Commissioner
Docket No. 46759
United States Tax Court
23 T.C. 433; 1954 U.S. Tax Ct. LEXIS 34;
November 30, 1954, Filed
Decision will be entered for the petitioner.
A social club lost a number of its members and the remaining members decided to sell the clubhouse, pay off existing debts, and distribute the assets. The club had been exempt from income taxes until the date of the sale. Held, the sale of the club property and the distribution of the pro rata share of assets among the members did…
2Cases cited4 opinions
- Koon Kreek Klub v. ThomasCourt of Appeals for the Fifth Circuit · 1939
- Santee Club v. WhiteCourt of Appeals for the First Circuit · 1936
- Anderson Country Club, Inc. v. CommissionerUnited States Tax Court · 1943
- Mill Lane Club, Inc. v. CommissionerUnited States Tax Court · 1954